This invention relates to reward programs, and particularly to a automated reward program available to merchants through financial institutions.
Rewards programs are conventionally offered by merchants to customers via coupons, points programs, such as frequent flyer miles, and the like. Such a program may provide a customer an incentive to do repeat business with a merchant, thus creating customer loyalty.
Currently merchants offer discounts, such as with a coupon, or electronically, most often with a gift card or point cards with which to customers present their card to a merchant using a specific point of sale (POS) hardware and software provider that facilitates the program. Across multiple merchants, such a discount program would require establishment of a common POS infrastructure at all merchants or running separate programs inside each POS network, which is cumbersome to manage.
Some discount programs apply the discount at the time of purchase, such as by using “points”, miles, or other intangible currencies to reward a customer. Such programs provide less incentive for a customer to return, if any, compared to a program that provides discounts or credits on future purchases in dollars that are more easily appreciated, understood, and used by the customer.
Available discount programs that provide “cash back” rewards are not specific to a merchant, but rather are specific to type of card, such as the Discover Card® program.
Thus, there is a need for merchant specific customer discount programs that provide rewards in dollars, allow merchants to tailor discounts offered, provide an incentive for the customer to repeat purchases, and reduce capital investment on the part of the merchant.